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Home My WebLink About17-44 NonCompliance Waiver for CBK Land Development Filed in Clerk's Office 4SpUTH 8�� AUG 0 9 2017 \PEAK KAREE°,fM F0, `vA1L`..R CIT'r'CLERK,SOUT'FHEI 0, I`ve 1865 CITY OF SOUTH BEND COMMUNITY INVESTMENT August 7,2017 Council Member Gavin Ferlic, Chairperson Community Investment Committee South Bend Common Council 4th Floor, County City Building South Bend, IN 46601 RE: Submission of Resolution Approving Waiver of Noncompliance for Real Property Tax Abatement for CBK Land Development, LLC Dear Council Member Ferlic, Attached please find a proposed form of resolution approving a waiver of noncompliance, pursuant to Indiana Code 6-1.1-12.1-11.3, for CBK Land Development, LLC (the "Company"). The South Bend Common Council (the "Common Council") adopted its Confirming Resolution 4406-14 confirming the designation of a certain area in the City of South Bend, Indiana as an Economic Revitalization Area for the purposes of granting a ten(10)year tax abatement for real property in conjunction with the construction of a distribution by the Company. The St. Joseph County Assessor's Office distributed a Notice of Assessment on January 1,2016. The Company filed a Form CF-1/Real Property with the City of South Bend on or about March 11, 2016, however, the Company inadvertently did not file the Form 332/RE with the Auditor's office. The Company subsequently received a Tax Bill in April 2017 providing that the spring installment of 2016 property taxes on the Parcel was due May 10,2017.Upon receipt of the Tax Bill,the Company filed Form 322/RE with the Auditor's office on or about May 9, 2017. The Company timely remitted payment of$61,392.57 to St. Joseph County Treasurer prior to the May 10,2017 due date for Spring Taxes. The Company is requesting that the Common Council waive noncompliance with the filing deadline for the Form 322/RE. The Department of Community Investment endorses and supports this waiver as the Company has exceeded their abatement milestones.The Company exceeded the project cost stated in the original petition for tax abatement. The initial cost of the project was estimated to be $4,885,376 and the actual cost was $5,634,953, which sum is made up of a land acquisition cost of$484,663.38 and construction costs of$5,150,300. The project has met the employment representation stated in the original petition for tax abatement from when the project began operating,until the present date. EXCELLENCE I ACCOUNTABILITY INNOVATION INCLUSION I EMPOWERMENT f! 14005 County-City Building 227W.Jefferson Bvld. South Bend.Indiana 46601 p574.235.9371 www.southbendin.gov �N We ask that the attached resolution be referred to the Community Investment Committee for an advisory recommendation and then heard at the Common Council meeting to be held on August 14, 2017. Mr. Hoff, Business Process Manager, will be presenting at the meetings. Should you require additional information,please let me know. Sincerely, Director Economic Resources&Business Development Department of Community Investment Attachments cc: Robert Hoff, CBK Land Development Aladean DeRose Dawn M. Macaddino Lacie Andrew EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 14005 County-City Building 1 227 W.Jefferson Bvld.j South Bend,Indiana 466011 p 574.235.9371 www.southbendin.gov Bill No. RESOLUTION NO. A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND,INDIANA,WAIVING NONCOMPLIANCE WITH TAX ABATEMENT PROCEDURES FOR REAL PROPERTY COMMONLY KNOWN AS 5245 DYLAN DRIVE, SOUTH BEND,INDIANA FOR CBK LAND DEVELOPMENT,LLC WHEREAS, the Common Council of the City of South Bend, Indiana (the "Common Council") at its meeting held on November 10, 2014 adopted its Confirming Resolution 4406-14 (the "Confirming Resolution") confirming the designation of a certain area within the City of South Bend, Indiana(the "City")commonly known as 5245 Dylan Drive, South Bend, Indiana(the "Real Property")pursuant to Indiana Code 6-1.1- 12.1 (the "Act"), as an Economic Revitalization Area for the purposes of granting an ten (10) year tax abatement for real property to CBK Land Development,LLC; and WHEREAS,the Real Property was more particularly described as follows: 613.6' E.n.N.e. & 613.6' E Side S.e.n.e Ex: 4.718 Ac to State and Ex Irr Tract Nel/4 Nel/4 And ex Irr tract cont 5.26 ac +/- 18-38N- 2E 9.155 ac tot 12/13 split to 025-1010-017002 Per 1111301/08/09 missed and fixed in 2013 Split to 04-1010-017001 00-01 Split Trans 12204 2/9/1998 Annxd 06-07 per Ord 9587-05 09/10 Pt to Ptg Prairie Manor 42 10/11 pt to ptg Prairie Minor#3 Beg 910.31' from the NW 1/4 of 38 2e thence Ne 345.46' Thence Se 919.19 thence SW 958.27' Thence Nw 731.96 thence Ne 445.17' Thence Nw 187.23' thence Ne 167.04 To point of Beg cont 5.26 Ac +/- RP 1732 04-03-08 and which has Parcel ID Numbers 025-1010-0170, 025-1010- 016902, and 025-1010-017002. WHEREAS,the Common Council determined that CBK Land Development LLC (the "Company") qualified for and the Common Council granted a real property tax 1 deduction for a period of ten (10) years as provided in the alternate abatement schedule pursuant to the Section 17 of the Act set forth below: Real Property Year Abatement 1 100% 2 95% 80% 4 65% 5 50% 6 40% 7 30% 8 20% 9 10% 10 5% WHEREAS,the St.Joseph County Assessor's office issued a Notice of Assessment dated as of January 1, 2016 with respect to the Parcel; and WHEREAS, an Application for Deduction from Assessed Valuation of Structures in Economic Revitalization Areas(Form 322/RE)("Form 322/RE")must be filed with the St. Joseph County Auditor(the "Auditor")before May 10 in the year in which the addition to assessed valuation (or new assessment) is made, or not later than thirty (30) days after the Notice of Assessment of Land and Improvements (Form 11) (the "Notice of Assessment") is mailed to the property owner if it is mailed after April 10; and WHEREAS, Form 322/RE requires that Form CF-1/Real Property (Form CF-1) ("Form CF-1")must be attached to the Form 322/RE; and WHEREAS,the Company filed a Form CF-1/Real Property with the City of South Bend on or about March 11, 2016, however, the Company mistakenly and inadvertently did not file the Form 332/RE with the Auditor; and WHEREAS, the Company subsequently received a Tax Bill in April 2017 (the "Tax Bill") providing that the spring installment of 2016 property taxes on the Parcel was due May 10, 2017; and WHEREAS, upon receipt of the Tax Bill, the Company filed Form 322/RE with the Auditor's office on or about May 9, 2017; and WHEREAS, the Tax Bill, without the application of the abatement previously approved by the Common Council, results in a tax being due of$122,785.14; and 2 WHEREAS, the Company timely remitted payment of$61,392.57 to St. Joseph County Treasurer prior to the May 10, 2017 due date for Spring Taxes; and WHEREAS, the Indiana General Assembly enacted Ind. Code § 6-1.1-12.1-11.3 as the expression of this State's policy authorizing a local designating body to waive tax abatement noncompliance events such as the untimely or erroneous filing of an application form; and WHEREAS, the Company is requesting this Common Council to exercise its authority as the designated body to waive compliance by adopting a resolution pursuant to Ind. Code § 6-1.1-12.1-11.3 to enable the Company to receive the benefit of the approved tax abatement for 2016 ( Pay 2017). WHEREAS, the noncompliance event has been corrected, and, pursuant to IC 6- 1.1-12.1-11.3(c), a public hearing of the Common Council has been held on the subject of this Resolution. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The above recitals are incorporated herein by reference, and the Common Council finds that petitioner has specifically presented supporting testimonial evidence of the following facts in support of this resolution: A. The petitioner states that while the Company did file a Form CF-1/Real Property Form with the City of South Bend, the Company mistakenly and inadvertently failed to file a Form 322/RE with the Auditor's office before May 10, 2016. B. Upon receipt of the 2016 Tax Bill in April 2017, the Company filed with the County Auditor the Form 322/RE on or about May 9, 2017. C. The Company exceeded the project cost stated in the original petition for tax abatement. The initial cost of the project was estimated to be$4,885,376.00 and the actual cost was $5,634,953.90, which sum is made up of a land acquisition cost of$484,663.38 and construction costs of$5,150,300.52. The project has met the employment representation stated in the original petition for tax abatement from when the project began operating, until the present date. D. The project is a positive development to this community. The Company continues to improve the project and the Parcel through an addition to the project of a patio constructed entirely with funds of the Company. E. All other required documentation has been received from the Company by the required dates. 3 SECTION II. The foregoing facts, taken together, lead the Common Council to conclude that compelling reasons exist to waive the filing deadline. SECTION III. The Common Council hereby reaffirms that the ten-year tax abatement previously granted to CBK Land Development, LLC in Resolution No. 4406- 14 remains in effect, and it further waives the filing deadline of Form 322/RE by May 10, 2016, and pursuant to Section 4.8 of the Act and Section 11.3 of the Act, adopts this resolution that authorizes acceptance. SECTION IV. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. Member of the Common Council Filed in Clerk's Office PRESENTED AUG 0 9 2017 T$07 APPROVED 4 OPTED KAREEMAH FOWLER CITY CLERK,SOUTH IaEI~1D,IN